EXPLORATION AND MINING: EXPLORATION AND MINING: COPPER- -GOLD IN - PowerPoint PPT Presentation

EXPLORATION AND MINING: EXPLORATION AND MINING: COPPER- -GOLD IN THE LAO PDR GOLD IN THE LAO PDR COPPER AND AND GOLD AND NICKEL IN WA GOLD AND NICKEL IN WA INVESTOR UPDATE INVESTOR UPDATE

HI GHLI GHTS: � ASX listing on 6 April 2006, codes AYR and AYRO � Recent MOU on JV agreement with Nilandon Mining Group (Laos) on Nam Thong Copper-Gold Project area � Nam Thong has similarities to Sepon Cu-Au deposit to the SE � Gold projects in WA with current total resource base of 308,000 ozs � Pre-feasibility study completed on Comet Gold Mine area: treatment of ore on site has been on hold until higher gold price, or toll treatment may occur sooner � Exploration update at Horse Well gold project � Exploration update at Kurrajong nickel project

SHARE STRUCTURE AND CASH POSI TI ON Shares on issue: 69,300,000 (quoted 56,625,000) Current price: $0.15 Market Capitalisation: $10.4 million Listed options on issue: 35,000,000 Current price: $0.05 Exercise date: 6 April 2009 Top 5 shareholders: Shareholder Name Number of shares Percentage Big Bell Gold Operations Pty Ltd 5,000,000 7.22% Jayson and Janet Meyers 4,000,000 5.77% Nakura Resources Pty Ltd 4,000,000 5.77% Frazerview Investment Pty Ltd 3,500,000 5.50% Auriferous Mining Ltd 2,499,925 3.61% Cash on hand: approximately $2.2 million

BOARD AND MANAGEMENT Peter Harold - Non-Executive Chairman Managing Director Sally Malay Mining Chairman –Territory Uranium Dr. Jayson Meyers – Managing Director Assoc Prof Curtin University Ex Great Central Mines Group Peter Hepburn-Brown – Executive Director Also Kasbah Resources Ex Harmony Gold, Great Central Mines, WMC Kevin Hart – Non-Executive Director and Company Secretary Partner Endeavour Corporate

LAOS PROJECT - Project area highly prospective for Cu-Au mineralisation - HOA signed with Nilandon Mining Group to earn up to 80% interest - Adjacent to Pan Australian’s Phu Bia Mine (2.0 Moz Au and 1.2 Mt Cu), and along strike from Oxiana’s Sepon Mine (4.5 Moz Au and 1.8 Mt Cu) - Project area consists of mining concession area and application for exploration and mining concession anticipated to be granted before the end of the year - Entry into project to earn 60% is US$1.2M in 3 staged payments: US$250K paid, US$300K on granting of application, and after 18 month exploration period US$650K (or exit with no interest) - On completion of BFS earn 80%, then both parties contribute or dilute.

Gold Occurrences Copper Occurrences

GENETIC MODELS FOR LAOS Cu-Au DEPOSITS

LAOS PROJECT - Geology similar to Sepon: siltstones and limestones with high level intrusions, silica and sulphide alteration, same foldbelt - Potential for copper and gold - Granted mining lease - JV partners have good relations with local and national government - Number of untested areas of outcropping mineralisation and geochemical anomalies - No restrictions on foreign ownership - Low cost labour force - Relatively easy access - Excellent time to be establishing projects in Laos

New Frontier

COMET-W EBB’S PATCH � Project located near Cue � Near operating mills at Mt. Magnet and Sandstone � Evaluation completed on construction of a MMP at site

COMET-W EBB’S PATCH � Principal strategy is to recommence mining at higher gold price � Comet underground resource 165,000 ozs Nickel Exploration � Pinnacles, Comet North, area Eclipse, Comet South and Venus have over 65,000 ozs in open cut potential � Ultramafic horizon identified having favourable rock chemistry for nickel-sulphide occurrences � Exploration using geophysics, structural studies and intensive drilling programs

COMET DRI LLI NG � Drilled approximately 6,500 metres to test fault zones hosting sulphide alteration and gold � Discovered new high-grade zone 500 m to south of Comet � Confirmed continuation of Comet structure at depth

COMET DRI LLI NG TARGETS Long section shallow TEMPEST conductors

COMET DEEP DRI LLI NG FOR DEPTH CONTI NUATI ONS

COMET SAM SURVEYI NG � Gold bearing structures detected and new targets generated � Venus target drilled and showed low grade gold mineralisation

COMET PROJECT, MI NI NG Pre-feasibility study completed May 2007: - Metallurgical test results, so far high gravity recovery following 75 microns grind (>50%) with a total recovery of 94% with leaching - This shows that gold with sulphide is non-refractory - Optimal flow sheet for processing plant design - Costing of plant components and construction - Calculation of operating and site costs using updated quotes - Mine design, ore-to-waste ratios, and development costs - Mining costs and transport costs - Treatment at site is an expensive option, and production scenarios are more robust at higher gold price or using toll milling

Rock Chips: Nickel MgO

HORSE W ELL � Palomino prospect has a gold resource of 75,000 oz above 100m depth � Open along strike and depth � Optimised open cut potential � Other advanced prospects within tenement � Within trucking distance to Jundee and Wiluna mines � Geophysics and drilling to increase resources and explore for new deposits

HORSE W ELL � Tenement covers Horse Well greenstone domain � Palomino contains JORC resource of 600,000 t at 2.7 g/t � Palomino is open along well-defined geological structures � High gold grades in drilling at other prospects � Large area of greenstone belt not effectively explored by drilling � Cu-Pb-Zn targets in east

HORSE W ELL Open cut resources and targets Palomino Bronco Filly

HORSE W ELL Palomino Long section looking east

HORSE W ELL Leapfrog Target study Horse Well prospects with N-S and NE trends digitised. The intersection lines coincide with the lineations observed at each of the deposits.

HORSE W ELL SAM survey Results � Tenements recently cleared through Native Title � Resource evaluation for Bronco and Filly � Geochemical targeting and drilling in 2007

NORTH KI MBERLEY 88 Creek project • • Entirely new gold province in Australia • Gold can be explained as an epithermal deposit forming within the continental plate Several prospects with gold • in soils Multi-spectral targets •

8 8 CREEK • First pass drilling proved a bedrock source for the gold • Requires targeting and drilling below low-grade gold intersections in order to test for high-grade mineralisation 88 CREEK e t n A c u c o D t a b o r m

NORTH KI MBERLEY difficult field area

8 8 CREEK Epithermal gold model High grade High grade Kimberlite Kimberlite Intrusive Intrusive gold target gold target at depth at depth Porphyry Stock Low sulphidation Low sulphidation system system

8 8 CREEK � Drill testing using a specialised rig that get into field area � Drilling to occur when tenement extension granted and at end of cyclone season

FUTURE ACTI VI TI ES � Progress exploration in Laos: company set up, preliminary exploration, granting of concession, drilling in mining lease area, aggressive exploration � Comet and Horse Well projects: commence mining on favourable profit scenarios � Targeting gold exploration at Horse Well � Nickel exploration at Kurrajong project � Drilling at 88 Creek on tenement extension � Evaluate projects for acquisition

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